Starbucks Coffee Co. has announced that its subsidiaries, Starbucks Coffee EMEA and Starbucks Coffee International Inc., have entered into an agreement with joint-venture partner, Sigla, S.A. (Grupo Vips) of Spain, to which Starbucks, through its subsidiaries, will assume 100 percent operating control of the Starbucks business in France, converting the market to a company-operated business.
As part of the transaction, which is expected to close Sept. 30, Grupo Vips will be a fully licensed partner with exclusive rights to operate Starbucks coffeehouses within the territories of Spain and Portugal. Prior to the execution of this agreement, Starbucks and Grupo Vips each held 50 percent equity stakes in the operating entities in France, Spain and Portugal.
The agreement positions both Starbucks and Grupo Vips to maximize operational efficiency and profitability while continuing to deliver an unparalleled customer experience in France, Spain and Portugal. The clarity of ownership also allows both companies to capitalize on the benefits of aligning their respective market's business opportunities, operation and organization with their existing infrastructure.
"This agreement underscores Starbucks commitment to France and our belief in the long-term market's potential," Philippe Sanchez, managing director of Starbucks Coffee France, said in a news release. "I look forward to working closely with our partners to continue serving the local communities, deliver the Starbucks Experience and grow the market over time."
The current leadership teams for France, Spain and Portugal will remain in place as an integral part of the operation.
Starbucks has been a part of the communities in France since opening its first location at Paris Opera in January 2004. The company now operates more than 50 locations in and around Paris and Lyon, and employs approximately 800 partners. Together with Grupo Vips, Starbucks has also been in operation in Spain and Portugal since 2002 and 2008 employing in both markets a total of 1,000 partners.
